XRP Surges 11% as SEC Drops Appeal in Ripple’s Legal Case

Washington, D.C. –  XRP, the cryptocurrency linked to Ripple Labs, saw a significant 11% surge in value after the U.S. Securities and Exchange Commission (SEC) announced that it would drop its appeal in the long-running legal battle against Ripple. The decision marks a major victory for the company and the broader cryptocurrency industry, easing regulatory uncertainties surrounding digital assets.

Background of the Legal Dispute

The SEC filed a lawsuit against Ripple in December 2020, alleging that the company conducted an unregistered securities offering by selling XRP tokens. The case sparked intense debates over whether cryptocurrencies should be classified as securities, creating a precedent-setting legal battle.

In a partial ruling in 2023, U.S. District Judge Analisa Torres determined that XRP was not a security when sold to retail investors through exchanges. However, she ruled that XRP sales to institutional investors could be considered unregistered securities transactions. The mixed ruling gave Ripple an advantage, but the SEC had initially sought an appeal.

Ripple CEO Reacts to the Decision

Following the SEC's withdrawal of its appeal, Ripple CEO Brad Garlinghouse expressed his relief over the nearly four-year-long legal battle. Speaking at the Digital Assets Summit in New York, he criticized the SEC’s regulatory approach, stating:

“I deeply believed that we were on the right side of the law and on the right side of history. The system feels broken... They were just not acting in good faith.”

Garlinghouse also emphasized that the decision not only benefits Ripple but provides clarity to the entire cryptocurrency industry, which has long struggled with uncertain regulations.

Impact on the Crypto Market

The news triggered a strong rally in XRP’s price, which jumped 11% to $2.52, marking a substantial increase. The cryptocurrency has gained over 390% since the SEC's lawsuit and has surged 20% this year alone.

Analysts believe that the SEC's move signals a potential shift in regulatory strategy, especially as the commission has recently dropped enforcement cases against other crypto platforms. This could pave the way for a more constructive dialogue between regulators and the digital asset industry.

What’s Next for Ripple and XRP?

With legal uncertainties now easing, Ripple is expected to focus on expanding its global financial partnerships. The company, which operates about 95% of its business outside the U.S., is looking to integrate XRP further into payment networks and cross-border transactions.

Market experts believe the resolution of this case could encourage more institutional investors to adopt XRP, reinforcing its role as a leading digital asset in the cryptocurrency landscape.

The SEC’s decision is seen as a turning point in the crypto industry’s fight for regulatory clarity, potentially influencing how digital assets are treated under U.S. financial laws in the future.